Economic institution

The ECONOMYECONOMY is the institution that provides for the production and distribution

of goods and services, which people in every society need. Sometimes they can provide these things for themselves, and sometimes they rely on others to provide

them. When people rely on others for goods or services, they must have

something to exchange, such as currency (in industrialized societies) or other goods or services (in nonindustrialized societies). The customs surrounding exchange and distribution of good and services shape

societies in fundamental ways.

Social Institutions

ECONOMIC INSTITUTIONS & ECONOMIC INSTITUTIONS & SYSTEMSYSTEM

Social Institutions

ECONOMIC INSTITUTIONS & ECONOMIC INSTITUTIONS & SYSTEMSYSTEMI. MODES OF SUBSISTENCE

• Food Foraging Societies- hunting fishing and gathering wild plants

• Characteristic of food foraging life Mobility Small group size Egalitarianism Communal property Flexible division of labor by gender• Food producing societies (Neolithic

Revolution- domestication of plants and animals by people with stone based technologies)

Social Institutions

ECONOMIC INSTITUTIONS & ECONOMIC INSTITUTIONS & SYSTEMSYSTEM• PASTORALISM-breeding and managing

migratory herds of domesticated grazing animals such as goats sheep

and cattle. This is effective in dry, cold, and steep, rocky places.

Social Institutions

ECONOMIC INSTITUTIONS & ECONOMIC INSTITUTIONS & SYSTEMSYSTEM• HORTICULTURE- with the advent of

plant domestication, some societies

took horticulture in which small communities of gardeners work

with simple hand tools, using

neither irrigation nor plow.

Example: Kaingin

Social Institutions


• AGRICULTURE- is crop cultivation that involve using technologies other than hand

tools, such as irrigation , fertilizers and wooden and metal plow pulled by harness draft animals . Some developed countries

used fuel powered tractors to cultivate large tract of lands.

Social Institutions


• INDUSTRIALIZATION- replacing human labor and hand tools with

machines

Social Institutions


II. LABOR RESOURCES AND PATTERNS• Division of Labor by GenderWomen’s work tend to be confined to

traditional roles as dictated by their biological characteristics.

Men’s work tend to be those requiring physical strength, frequent travel, assumption of high level of risk and danger.

• Division of Labor by AgeElderly people are expected to contribute

much food.

Social Institutions

ECONOMIC INSTITUTIONS & ECONOMIC INSTITUTIONS & SYSTEMSYSTEMOlder men and women alike play an

essential role in spiritual matters,Elders with their past experiences are

considered as repositories of knowledge and wisdom especially in non-literate societies.

• COOPERATIVE LABOR- if the effort involves the whole community, a festive spirit permeates the work. Example: Bayanihan

Social Institutions

• CRAFT SPECIALIZATION- in contempoary industrial society, there is a greater diversity of specialized task to be performed. By contrast, in small scale society, division of labor typically occurs in terms of gender or age. With division of labor, there is specialization.

III. DISTRIBUTION AND EXCHANGE- III. DISTRIBUTION AND EXCHANGE- in society without money, rewards for labor are directly compensated.


Social Institutions

• REDISTRIBUTION-is a form of exchange in which goods flow into a central place where they are sorted, counted and reallocated. It involves power. Goods are stored in one central place and then distributed by the leaders in order to gain or main power; to assure support of followers; and to establish alliances.

• RECIPROCITY-the exchange of goods and services of approximately equal value, between two parties. Example: Gift-giving.


Social Institutions

• MARKET EXCHANGE-the buying and selling of goods and services with prices set by rules of supply and demand. MONEY is an important means in order to facilitate exchange in the market.


Social Institutions

IV. ECONOMIC SYSTEMSIV. ECONOMIC SYSTEMS-is a system of production and exchange of goods and services as well as allocation of

resources in a society.-The two dominant economic systems in the world are capitalism and socialism.

Most societies have varying blends of the two systems. Common hybrids of

capitalism and socialism are welfare capitalism and state capitalism.


Social Institutions

• CAPITALISM- is a system under which resources and means of production are privately owned, citizens are encouraged to seek profit for themselves, and success or failure of an enterprise is determined by free-market competition.

EXAMPLE: The United States is one of the most purely capitalistic societies in the world. Most U.S. businesses are privately owned, but the government does regulate business practices.


Social Institutions

WELFARE CAPITALISM- is a system that features a market-based economy coupled with an extensive social welfare system that includes free health care and education for all citizens.

EXAMPLE: Sweden allows private business ownership, but the government controls a significant part of the economy. High taxes support an extensive array of social welfare programs.


STATE CAPITALISM- is a system under which resources and means of production are privately owned but closely monitored and regulated by the government.

EXAMPLE: South Korea’s government works closely with the country’s major companies to ensure their success in the global marketplace.

Social Institutions


Social Institutions

• SOCIALISM -is a system under which resources and means of production are owned by the society as a whole, rights to private property are limited, the good of the whole society is stressed more than individual profit, and the government maintains control of the economy.

EXAMPLE: China is a socialist country. The government owns and controls almost all natural resources.


Social Institutions

SOURCES: SIOCIOLOGY AND ANTHROPOLOGYDr. Zenaida Q. Reyes, Dr. Diony V. Varela

and Prof. Arthur S. Abulencia http://www.sparknotes.com/sociology/

social-institutions/section3.rhtml https://www.google.com/search

Prepared by: J-anne Paula C. Dacusin


http://www.sparknotes.com/sociology/social-institutions/section3.rhtml

http://www.sparknotes.com/sociology/social-institutions/section3.rhtml

https://www.google.com/search

Education

Economic institution